Oriental Beauty Valley becomes global hub for cosmetics industry
The Oriental Beauty Valley in Shanghai's Fengxian District has become the city's largest, and China's most influential cosmetics industry cluster, Shanghai Mayor Gong Zheng said on Wednesday.
Shanghai has made the cosmetics and fashion consumption industry a key part of its new industry system, Gong said in a video speech at the 2022 Oriental Beauty Valley International Cosmetics Conference.
"The cosmetics industry can meet people's requirements for a better life, and represent the trends in consumption upgrading and dynamics of the market," he said.
Retail sales of cosmetics products in Shanghai reached 175.4 billion yuan (US$24.19 billion) in 2021, a 15.7 percent increase on year, accounting for 10 percent of the city's total retail consumption.
Nationwide, the total retail amount of cosmetics products reached 400 billion yuan in 2021, including 40 percent of the products sold online, according to the latest data released at the conference.
Shanghai is building a world-class beauty and health industry in Fengxian New City, one of its five "new cities."
The valley in the southern suburban district has gathered a third of Shanghai's cosmetics firms, with an industrial scale of nearly 70 billion yuan. The brand value of the valley has exceeded 28 billion yuan, according to the Fengxian government.
Leading Chinese cosmetic brands such as Jala, Pechoin, Chicmax and Marie Dalgar have manufacturing centers or marketing headquarters at the park, which aim to be on par with France's Cosmetic Valley in Eure-et-Loir and Loiret, and Japan's Saito Life Science Park in Osaka.
Company representatives from home and abroad, as well as foreign consulate officials, shared their confidence and visions via video speeches for the valley in Shanghai.
"We're proud that beauty remains a lighthouse that is continuously stimulating people's inspiration for a better life, and bringing new dynamics to the world economy," said Fabrice Megarbane, president of L'Oréal North Asia Zone and chief executive officer of L'Oréal China.
He said Shanghai had an "insightful vision" to make beauty an essential part of its development for the high-end industry cluster and international consumption center.
Yamamoto Junji, senior managing director of the Japan Cosmetics Industry Association, said the Oriental Beauty Valley will play a bigger role to drive the development of the world's cosmetics industry in the new era.
Myung-Kyu Lee, a senior official with the Korean Cosmetics Association, said the mutual cooperation and exchange between Korean and Chinese cosmetics companies are expected to be further enhanced with the conference.
"Italians are obsessed with the oriental aesthetic and interested in Chinese cosmetics," said Caterian di Bert, president of the Italian Fashion Culture Center.
She said Chinese cosmetic brands will be a huge success in Italy and other European cities.
Jesper Herold Halle, commercial consul of the Royal Danish Consulate General in Shanghai, said the consulate is happy to help Danish and Chinese companies to get in touch and build business relationships in the beauty industry.
Shanghai Vice Mayor Zhang Wei launched the Oriental Beauty Valley Metaverse Exhibition Hall at the conference, along with a national intellectual property rights protection center.
Over 70 leading global firms will exhibit and promote their new products, as well as exchange with their peers in the metaverse exhibition hall.
During the conference through Thursday, forums and panel discussions will be held on the development strategies of global cosmetics brands. These will also gather suggestions on new technologies, low-carbon development, east-meets-west trends, and digital economy in the cosmetics sector.